Exxon Mobil Corp., the biggest and richest U.S. oil company,
posted a 46% drop in first-quarter profit, hurt by the sharp slump
in oil prices, though results still topped expectations.
Exxon has moved to conserve cash in a sign that it doesn't
expect a quick rebound in crude prices. The company has announced
it would slash its capital spending by 12% this year to $34 billion
and reduce its stock buybacks in the near term, though it raised
its quarterly dividend on Wednesday.
In the latest quarter, earnings in Exxon's exploration and
production business dropped to $2.9 billion.
Meanwhile, refining and marketing earnings rose to $1.7 billion.
Exxon's results have been buoyed by strength in its oil refining
business, which benefits from cheaper crude.
Earnings in the chemical segment dropped to $982 million.
Exxon's slumping production in part reflects a willingness to
give up some less-profitable barrels, such as at a concession in
Abu Dhabi that has expired. Exxon Chief Executive Rex Tillerson has
made improving profitability one of the company's highest
priorities.
In all, Exxon Mobil reported a profit of $4.94 billion, or $1.17
a share, down from $9.1 billion, or $2.10 a share, a year earlier.
Revenue dropped to $67.62 billion from $106.33 billion.
Analysts polled by Thomson Reuters expected a per-share profit
of 83 cents and revenue of $56.39 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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